AB 632: Small Business Procurement and Contract Act: small business and disabled veteran business enterprises.

The Small Business Procurement and Contract Act requires state agencies to provide for small business preference in the award of contracts for goods, information technology, services, and construction, with a 5% bid preference on applicable bid specifications. This act also authorizes a state agency to award a contract for the acquisition of goods, services, or information technology that has an estimated value of greater than $5,000, but less than $250,000, to a certified small business, including a microbusiness, or to a disabled veteran business enterprise, as long as the agency obtains price quotations from 2 or more certified small business, including a microbusiness, or from a disabled veterans veteran business enterprise. enterprise, without complying with specified competitive bidding requirements. Existing law requires a bidder under these provisions to submit a written declaration under penalty of perjury.

This bill would increase the value of the contract to greater than $5,000, but less than $500,000, for disabled veteran business enterprises under these provisions. The bill also would specify that a certified small business or disabled veteran business enterprise that utilizes this streamlined process as an alternative to the competitive bidding requirements cannot also receive the small business preference or the disabled veteran business enterprise participation incentive, as specified. By expanding the scope of contracts that may be awarded to a disabled veteran business enterprise under these provisions, the bill would expand the crime of perjury and impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.